Lecture Notes for Ch 7 of MD: Multiple Regression

1 Introduction

we’ll still use Credit to demonstrate multiple regression with:

1. A numerical outcome variable y, in this case credit card balance.

2. Two explanatory variables:

   • A first numerical explanatory variable \(x_1\). In this case, their credit limit.

   • A second numerical explanatory variable \(x_2\). In this case, their income (in thousands of dollars).

2 Exploratory data analysis

Let’s load the Credit data and:

• Use the View command to look at raw data.
• Now select() only Balance, Limit, Income, Rating and Age variables. (We will use Rating and Age in a forthcoming exercise)